Discuss in brief the following: Environment, Social and Governance (ESG) Index.
CS Professional · Ethics, Governance and Sustainability · PYQS · June 2018
Discuss in brief the following: Environment, Social and Governance (ESG) Index.
Answer & Explanation:
ESG describes the environmental, social and corporate governance issues that investors consider in the context of corporate behavior. Integration of ESG refers to the active investment management processes that include an analysis of environmental, social and corporate governance risks and opportunities and sustainability aspects of the company performance evaluation. The ESG index employs a unique and innovative methodology that quantifies a company's ESG practices and translates them into scoring system which is then used to rank each company against its peers in the market. Key Performance Indicators Environment - Energy use and efficiency, Greenhouse gas emissions, water use, use of ecosystem services – impact & dependence and innovation in environment friendly products and services. Social - Employees, poverty and community impact and supply chain management Governance - Codes of conduct and business principles, accountability, transparency and disclosure and implementation – quality and consistency.
Topics: Sustainability
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